It's almost a cycle.

Something bad happens because of lack of regulation -> People strive for regulation -> Govt's actually regulates and sets some norms/procedures -> system works for a while -> Then someone takes the same idea and molds it into something else to bypass the regulation -> they get promoted because they are "clever" and get rewarded -> Then something bad happens as the tool is used by public.

From Prediction markets to Buy now, pay later to Delve to so many other things.

Is there a name to this particular phenomenon, because this just keeps on repeating in multiple industries.